Williams-Sonoma Inc (WSM)
Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 90.65% per annum.
- WSM price at the close of April 28, 2025 was $152.54 and was lower than the bottom border of the primary price channel by $23.24 (13.22%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 86.13% per annum.
- WSM price at the close of April 28, 2025 was higher than the top border of the secondary price channel by $5.54 (3.77%). This indicates a possible reversal in the secondary trend direction.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of WSM price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: November 21, 2022
End date: March 10, 2025
a = 2.1977
b = 0.0018
s = 0.1274
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 90.65%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1274) – 1
= 66.46%
November 21, 2022 calculations
Top border of price channel:
Exp(Y647)
= Exp(a + b × X647 + 2 × s)
= Exp(a + b × 936 + 2 × s)
= Exp(2.1977 + 0.0018 × 936 + 2 × 0.1274)
= Exp(4.1072)
= $60.78
Bottom border of price channel:
Exp(Y647)
= Exp(a + b × X647 – 2 × s)
= Exp(a + b × 936 – 2 × s)
= Exp(2.1977 + 0.0018 × 936 – 2 × 0.1274)
= Exp(3.5976)
= $36.51
March 10, 2025 calculations
Top border of price channel:
Exp(Y1,221)
= Exp(a + b × X1,221 + 2 × s)
= Exp(a + b × 1,776 + 2 × s)
= Exp(2.1977 + 0.0018 × 1,776 + 2 × 0.1274)
= Exp(5.5922)
= $268.33
Bottom border of price channel:
Exp(Y1,221)
= Exp(a + b × X1,221 – 2 × s)
= Exp(a + b × 1,776 – 2 × s)
= Exp(2.1977 + 0.0018 × 1,776 – 2 × 0.1274)
= Exp(5.0826)
= $161.20
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 90.65% per annum.
- WSM price at the close of April 28, 2025 was $152.54 and was lower than the bottom border of the primary price channel by $23.24 (13.22%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: January 22, 2025
End date: April 23, 2025
a = 14.7843
b = -0.0054
s = 0.0422
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0054) – 1
= -86.13%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0422) – 1
= 18.38%
January 22, 2025 calculations
Top border of price channel:
Exp(Y1,189)
= Exp(a + b × X1,189 + 2 × s)
= Exp(a + b × 1,729 + 2 × s)
= Exp(14.7843 + -0.0054 × 1,729 + 2 × 0.0422)
= Exp(5.5100)
= $247.16
Bottom border of price channel:
Exp(Y1,189)
= Exp(a + b × X1,189 – 2 × s)
= Exp(a + b × 1,729 – 2 × s)
= Exp(14.7843 + -0.0054 × 1,729 – 2 × 0.0422)
= Exp(5.3413)
= $208.79
April 23, 2025 calculations
Top border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(14.7843 + -0.0054 × 1,820 + 2 × 0.0422)
= Exp(5.0175)
= $151.03
Bottom border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(14.7843 + -0.0054 × 1,820 – 2 × 0.0422)
= Exp(4.8488)
= $127.58
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 86.13% per annum.
- WSM price at the close of April 28, 2025 was higher than the top border of the secondary price channel by $5.54 (3.77%). This indicates a possible reversal in the secondary trend direction.